Thailand Seeks Above Market Price For Rubber From China

Thailand has asked China to buy 200,000 tonnes of its rubber at a price higher than the current market price and it is being considered by China.

The move is to encourage a price hike in the future and also help Thai farmers, said Thailand's Commerce Ministry.

The latest development came after a mission of Thai officials to Kunming, China, for the second bilateral meeting on agricultural products cooperation.

Commerce Minister General Chatchai Sarikulya said Thailand will soon get good news about the sale of rubber and rice under closer cooperation between the two countries.

Under a memorandum of understanding (MoU) signed last year, China is to buy two million tonnes of Thai rice and 200,000 tonnes of rubber, but so far only about 300,000 tonnes of rice have been exported to China under the MoU.

Chatchai said China will soon sign a contract to buy one million tonnes of new rice crops from Thailand.

The two countries are expected to finalise the agreement on rice and rubber at an upcoming third meeting in Nakhon Ratchasima, Thailand, in July.

Officials from SINOCHEM, a Chinese state-owned enterprise, will also visit Thailand next month to negotiate the rubber contract.

The rice contract will be discussed by Thailand's Foreign Trade Department and China's COFCO.